Tuesday, November 25, 2008

Friday, November 21, 2008

Five more ways to increase the Team's impact.

Five more ways to increase the Team's impact.

6) Use RSS to pump information about Kiva loans into your email software, browser or news reader. The feed addresses for Field Partners operating in Mexico are:

· Fundacion para la Vivienda Progressiva

· Fundacion Realidad

7) Take advantage of social networks such as Facebook or MySpace to promote Kiva and the team “Para Mexico”. Particular actions you can take are:

· Install Facebook’s Causes application on your profile and then set Kiva as one of your favorites Causes

· OR install Facebook’s Kiva application (this is a different tool from the Cause application explained before). This application will show on your Facebook profile what entrepreneurs you have invested in.

. OR become a fan of Kiva's Facebook page.

· Every time you complete a loan on Kiva, you will see a small Facebook icon on the final “Thanks” screen when the transaction is confirmed. Press this icon and a news feed will be published so all your friends on Facebook can be notified that you just invested on a Kiva entrepreneur.

· Kiva on MySpace:

8) Add a link on your personal blog to the team’s pages:

9) Purchase a Kiva gift certificate for birthdays and incoming Holidays. That would make a great gift.

10) This coming Holiday season, while you partake with family and friends, take a moment to reflect on those less fortunate than us, and remember we are trying to help one microloan at a time.

Sunday, November 16, 2008

The Ugly Side of Microlending (Part 5 of 5)

Reproduced from an article in Business Week, December 13, 2007.

Full article http://www.businessweek.com/magazine/content/07_52/b4064038915009.htm


Last year, in a brash move characteristic of Grupo Salinas, lawyers for Azteca went to court rather than comply with a new law requiring banks to inform clients of the total financing costs they are charged. Azteca sought a type of protective order with which individuals or companies can shield themselves from application of a particular law or other government action. A federal judge granted the exception.

Freed of disclosure requirements, Azteca continues stressing weekly payments rather than long-term interest rates. When pressed for its average annual rate, Azteca asserts that it is about 55%. But Chuck Waterfield, a consultant based in Lancaster, Pa., who specializes in financial modeling for micro-lenders, points out that if Azteca's average rate is translated to make it comparable with APRs in the U.S., it comes to 110%. That's because Azteca charges interest on the full amount borrowed throughout the life of the loan, even as the principal declines—not on the declining balance, as is common in the U.S. An adjunct professor at Columbia University's School of International and Public Affairs, Waterfield has no relationship with Azteca.

When Azteca loans go bad, the results can be bruising for borrowers. Porfirio Soriano Pérez and his son Zalatiel bought a $1,435 Chinese-made motorcycle last year on an 18-month plan that required $29 weekly payments. They intended to use the bike to scout out customers for the parsley they grow on several acres just outside San Martín Texmelucan. The Sorianos knew the 68% financing would boost the motorcycle's total cost to $2,289, but they lacked cash to pay up front.

In February, disaster hit. A hailstorm wiped out their crop and with it their $350 monthly income. "Suddenly," says Porfirio, "we had nothing to sell, and no money." They fell behind on payments. Soon a collection agent began showing up at the extended Soriano family's unpainted home. In October, Azteca delivered written warning of legal action. "The problem is that people go into the store and buy out of pure emotion," says Morales, chief of Azteca's local legal department.

The Sorianos already had paid $1,560 on the motorcycle—more than the original sticker price—and owed about $700 more, but ended up returning the purchase. That erased the debt in Porfirio's name. The company will resell the bike and recover the money it's owed. The Sorianos, meanwhile, have nothing left to plant a new crop.

Monday, November 10, 2008

Five ways to increase the Team's impact.

In no particular order:

1) Invite family and friends to join Kiva and Para Mexico.

2) Reloan funds entrepreneurs pay back to you to other entrepreneurs.

3) The way teams are ranked on Kiva is by number of loans, not total loaned. Therefore it is better to loan $100 dollars to four entrepreneurs than making one single loan of $100, so the team’s total of loans increases by four, not by one.

4) Encourage your fellow team members to keep loaning by formulating challenges or posting messages on the team’s blog or Kiva’s Para Mexico page.

5) Be generous!! Remember you are helping out people around the world rise from poverty by helping themselves.

Can you think of something else ?

Wednesday, November 5, 2008

Yes, we did !!

Monday, November 3, 2008

October Stats

What a month October was. A month of explosive growth in members and amount loaned. Honestly, when this group started, I wasn't expecting this success. I thought a new member would join every once in a while, and new loans would be sporadic. How wrong I was. Take a look at this graphs:

Most of the team members reside in the USA, followed by Mexico, Canada, and three members that didn't disclose their location. And by the way, we have two mysterious Anonymous lenders.

The team is fulfilling its goal, which is funding entrepreneurs in Mexico, although there are plenty of loans to entreprenours around the world.

From $225.00 loaned in September to $2750.00 this month, that's a 1222.22% Increase (More than one THOUSAND percent)

Thank you everibody for your efforts.